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Will PRPPs take off?

Ontario latest province to sign on to model, but employer, employee uptake still uncertain

By Sarah Dobson

12/12/2016|Canadian HR Reporter|Last Updated: 12/12/2016

Joining the array of options available when it comes to retirement savings plans, pooled registered pension plans (PRPPs) are slowly being adopted across Canada. British Columbia, Saskatchewan, Nova Scotia and Quebec, along with federally regulated employers, have said yes to the new plans, with Ontario most recently joining the pack.

PRPPs are meant to be a low-cost option for workers without a pension plan, and the self-employed. In theory, members benefit from lower administration costs that result from participating in a large, pooled pension plan. In practice, however, it could take some convincing for both employers and employees to get on board.

As a concept, the PRPP sounds great, said Plamen Pletkov, vice-president for the Ontario branch of the Canadian Federation of Independent Business in Toronto.